Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. As of today (2026-07-09), Verrica Pharmaceuticals's Beta is 2.2184.
Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. We usually compare beta to 1. A beta of 1 indicates that the security's price will move with the market. A beta of less than 1 means that the security will be less volatile than the market. A beta of greater than 1 indicates that the security's price will be more volatile than the market.
Beta is primarily used in the Capital Asset Pricing Model (CAPM) to calculate the Cost of Equity, which can be used in the calculation of WACC %. The formula of Cost of Equity is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Biotechnology subindustry, Verrica Pharmaceuticals's Beta, along with its competitors' market caps and Beta data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Verrica Pharmaceuticals Beta vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Verrica Pharmaceuticals's Beta distribution charts can be found below:
* The bar in red indicates where Verrica Pharmaceuticals's Beta falls into.
Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. A stock's beta can be calculated by dividing the product of the covariance of the individual stock's returns and the market's returns by the variance of the market's returns over a specified period. Basically, GuruFocus uses the returns calculated over three-year period.
Verrica Pharmaceuticals (STU:1NE0) has a Beta of 2.2184 as of Jul. 09, 2026. Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. View historical data for Verrica Pharmaceuticals and its competitors.
Is Verrica Pharmaceuticals' Beta too high?
Verrica Pharmaceuticals' current Beta is 2.2184. Overall, Verrica Pharmaceuticals has a GF Score™ of 45/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Verrica Pharmaceuticals' Beta compare to ENGN and PEPG?
Verrica Pharmaceuticals' Beta of 2.2184 can be compared against companies in the Biotechnology industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beta for a Biotechnology company?
A good Beta depends on the Biotechnology industry context. However, Beta should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beta mean?
A high Beta can signal that a stock is expensive relative to its fundamentals. Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. View historical data for Verrica Pharmaceuticals and its competitors. Verrica Pharmaceuticals's current Beta is 2.2184. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Verrica Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, Verrica Pharmaceuticals (STU:1NE0) is currently considered Possible Value Trap. The stock's GF Value™ is €12.59, compared to a current price of €5.69 — trading 54.8% below its estimated fair value. The current Beta is 2.2184. Verrica Pharmaceuticals' overall GF Score™ is 45/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beta calculated?
Beta is calculated from a company's financial statements. For Verrica Pharmaceuticals (STU:1NE0), the current Beta is 2.2184 as of Jul. 09, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Verrica Pharmaceuticals (STU:1NE0) Overvalued in 2026?
Based on GuruFocus' analysis, Verrica Pharmaceuticals stock appears to be undervalued.
The current stock price of €5.69 is trading 54.8% below its estimated GF Value™ of €12.59.
GuruFocus considers Verrica Pharmaceuticals to be Possible Value Trap.
Key valuation signals for STU:1NE0:
Beta: 2.2184
GF Value™: €12.59 vs. price of €5.69 (54.8% below fair value)
No single metric tells the full story. See the STU:1NE0 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Verrica Pharmaceuticals Inc is a therapeutics company developing and commercializing medications for the treatment of dermatologic diseases, including skin cancers. Its commercial product and portfolio of product candidates are clinician administered therapies in areas of high unmet need. This product portfolio consists of one product with an approved indication for molluscum contagiosum, or molluscum, with the potential for several follow-on indications, as well as additional pipeline product candidates. Its commercial product, YCANTH (VP-102), for the treatment of molluscum in adult and pediatric patients two years of age and older. YCANTH (VP-102) is a proprietary drug-device combination that contains a GMP-controlled formulation of cantharidin.
45GF Score
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